THE WINDIES - SPOT REPORTS FROM THE EASTERN

UNCLAS SECTION 01 OF 02 BRIDGETOWN 000968

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR WHA/CAR
SANTO DOMINGO FOR FCS
SOUTHCOM ALSO FOR POLAD

E.O. 12958: N/A
TAGS: EAID EFIN PGOV PREL OFDP OVIP SENV JA XL
SUBJECT: THE WINDIES - SPOT REPORTS FROM THE EASTERN
CARIBBEAN - MAY 2006

REF: BRIDGETOWN 785

ANTIGUA AND BARBUDA

- PM Travels to Japan Ahead of Whaling Conference
- Indictments Heat up Antigua WTO Case

GRENADA

- Grenada Gets Debt Relief from Paris Club

ST. KITTS AND NEVIS

- Economy and Debt Grow

ST. LUCIA

- UN Ambassador Resigns to Run for Parliament

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ANTIGUA AND BARBUDA
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- PM Visits Japan Ahead of Whaling Conference

1. (U) Antigua and Barbuda Prime Minister Baldwin Spencer
traveled to Tokyo in May to meet Japanese Prime Minister
Junichiro Koizumi and other officials. Accompanied by
Antigua Minister for Tourism Harold Lovell and the country's
new Ambassador to Japan and representative to the
International Whaling Conference, Anthony Liverpool, the
delegation is reportedly examining how to make Antigua a
favored destination for Japanese tourists.

2. (SBU) Comment: This unlikely expedition is connected to
Japan's quest to end the ban on commercial whaling at the
International Whaling Conference, which will meet in June in
St. Kitts. Antigua, like other Eastern Caribbean countries,
has been a vocal proponent of ending the ban on hunting
whales although the small island nation has no real interest
in whaling (reftel). The PM's trip, along with substantial
economic assistance, is likely part of Antigua's reward for
supporting Japan. End comment.

- Indictments Heat up Antigua WTO Case


3. (U) The USG's indictment for money laundering of Antigua-
based Internet gaming operators William Scott and Jessica
Davis, and their related companies, Soulbury Ltd. and World
Wide Telesports (WWTS),has caused a flurry of condemnation
from Antigua, an off-shore center for Internet gambling.
Government of Antigua (GOA) officials said they see a link
between the indictment of two individuals who have lawful
businesses in Antigua and the World Trade Organization's
(WTO) 2005 decision that found certain U.S. prohibitions on
Internet gambling to be in violation of global trade rules.
Antigua's lead counsel on the WTO case believes that the
indictment demonstrates that the USG has not only failed to
comply with the WTO decision but is now acting contrary to
the WTO's finding against the U.S. Another official said
that the indictment gives the impression that the USG does
not intend to work through the WTO process to find a
solution to the dispute with Antigua.

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GRENADA
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- Grenada Gets Debt Relief from Paris Club


4. (U) The Paris Club of government creditors agreed to
reschedule US$16 million of Grenada's debt. The agreement
reduces the debt service Grenada owes the Paris Club members
by more than 90 percent. This arrangement covers debt owed
as of January 2006, as well as credits falling due between
January 2006 and December 2008. This arrangement, coupled
with a new International Monetary Fund (IMF) economic
stabilization program, should help Grenada continue its
recovery from Hurricane Ivan, which devastated the island
and its economy in September 2004.

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ST. KITTS AND NEVIS

BRIDGETOWN 00000968 002 OF 002


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- Economy and Debt Grow


5. (U) St. Kitts reported an economic growth rate of 4.8
percent for 2005, due largely to its successful tourism
sector. The nation's public debt also grew by 6.8 percent
during the past year, driven primarily by the closure of the
sugar industry late in 2005 and subsequent Government
payments to displaced sugar workers. Reports from the
Caribbean Development Bank warn that growing debt could
cause interest rates to rise and discourage private
investment in St. Kitts. The Government can look forward,
however, to making the last payments to former sugar workers
later this year. Combined with the end of subsidies for the
now shuttered sugar industry, this reduction in financial
obligations should result in a significant decline in the
Government's deficit spending.

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ST. LUCIA
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- UN Ambassador Resigns to Run for Parliament


6. (U) St. Lucia's Ambassador to the UN, Julian Hunte, has
resigned his position in order to run for Parliament in
upcoming general elections as a candidate of the ruling St.
Lucia Labor Party (SLP). Hunte was reportedly asked to run
for the seat, which he represented in Parliament from 1987
to 1996, after the SLP's original candidate dropped out of
the race. Hunte withdrew from electoral politics in 1997,
despite his distinctive Parliamentary service, following an
unsuccessful struggle against current Prime Minister Kenny
Anthony for leadership of the SLP. More recently, Hunte has
found himself well regarded by St. Lucians for his role as
UN Ambassador. Observers believe Hunte's strong reputation
should help his chances in the general election expected
later this year.
KRAMER